Hyundai Equus: Is real luxury the car or the brand?

[Disaster]

In my opinion, I believe that many folks confuse Luxury and Status. While virtually all "status" items convey a luxury, not all luxuries convey status. The brand, Hyundai, has luxury items (Genesis and Eqqus), but, they do not convey the status of say, Mercedes Benz. One could easily argue the Hyundais are just as luxurios as MB's, Lexus, etc., but you would be hard pressed to say that Hyundai has the status of the other marks.

You could call "status" a subset of luxury.

Here are a couple definitions of luxury.

1. A luxury good is one who's demand increases with income.

2. Luxury is something that is an indulgence, rather than a necessity.

People who have the money, are often willing to pay for status...they pay for things that arguably, don't have any better performance...but deliver status.

Luxury watches fall in this category. You can get just about everything you want in a watch...accuracy, durability, design...for a couple hundred dollars...less if extreme durability isn't a factor. Yet people pay thousands of dollars for a Rolex.

The Equus, by it's price and appointments, delivers a bit of status, but not to the level a marquee luxury brand will. It certainly delivers indulgences, that are not necessities.

There are always people who are adventurous, or like to be unique, and that will fuel some Equus sales, as well as the competitive price. However, one of two things must happen for Hyundai's "luxury" cars to make a dent in luxury sales market share.

1. Hyundai makes a HUGE improvement in their image, and be known as a company that can deliver a luxury automobile.

2. Hyundai creates a luxury car division that stands apart from the cheaper cars they make.

 

[sandy]

Sometimes, status is achievable for little money. In fact, low cost is what provides the status. An example was the wildly successful introduction of the VW Beatle back in the '60's. I don't how many of you remember that ad campaign .... but it positioned the Beatle as the anti-Detroit car because of its low price, high mpg, simple, unique styling etc. It worked, providing buyers with a status that comes from making a wise decision.

 

[Disaster]

Sometimes, status is achievable for little money. In fact, low cost is what provides the status. An example was the wildly successful introduction of the VW Beatle back in the '60's. I don't how many of you remember that ad campaign .... but it positioned the Beatle as the anti-Detroit car because of its low price, high mpg, simple, unique styling etc. It worked, providing buyers with a status that comes from making a wise decision.

Good point. Finding the best value can make a person look smarter and improve their status. The problem is, as you move higher up the food chain, it is harder for a non marquee brand to be recognized for it's value and those with less money will think anyone spending over $30K for a car is wasting their money and not very smart. That sandwiches Hyundai into a very tight spot.

It is also getting harder to differentiate luxury as more features are being added to lower end cars. For example, years ago you had to buy a Mercedes or BMW if you wanted the best safety features, air bags, stability control and the like. A wealthy person could actually use these features as an excuse to spend more money. Now, almost all cars have high strength passenger compartments, airbags, traction and stability control...etc. Luxury manufacturers have to reach further to find unique luxury features. How many people will pay to have massaging seats?

 

[sherrod]

Enjoy!

YouTube- MotoMan - What Is Luxury?

Great video. If Hyundai didn't pay him for this, they should. It's probably better marketing material than Hyundai will come up with.

 

[Konig]

Good point. Finding the best value can make a person look smarter and improve their status. The problem is, as you move higher up the food chain, it is harder for a non marquee brand to be recognized for it's value and those with less money will think anyone spending over $30K for a car is wasting their money and not very smart. That sandwiches Hyundai into a very tight spot.

It is also getting harder to differentiate luxury as more features are being added to lower end cars. For example, years ago you had to buy a Mercedes or BMW if you wanted the best safety features, air bags, stability control and the like. A wealthy person could actually use these features as an excuse to spend more money. Now, almost all cars have high strength passenger compartments, airbags, traction and stability control...etc. Luxury manufacturers have to reach further to find unique luxury features. How many people will pay to have massaging seats?

which brings my question: how come a kia sorento has UVO while a hyundai equus does not? How long is Hyundai going to wait before putting microsoft uvo in all their cars?

Im holding off buying any car until it has a solid infotainment system in place.

 

[Disaster]

which brings my question: how come a kia sorento has UVO while a hyundai equus does not? How long is Hyundai going to wait before putting microsoft uvo in all their cars?

Im holding off buying any car until it has a solid infotainment system in place.

I always wondered the same thing with Ford. Why did they have Sync in a Focus but not in their Volvo or Jaguar product lines. I expect, eventually, you will see the Microsoft/Kia/Hyundai products in all of Hyundai's lineup. My next auto purchase will definitely not be without a decent VR system.

 

[Konig]

I always wondered the same thing with Ford. Why did they have Sync in a Focus but not in their Volvo or Jaguar product lines. I expect, eventually, you will see the Microsoft/Kia/Hyundai products in all of Hyundai's lineup. My next auto purchase will definitely not be without a decent VR system.

+1

I think harmon annouced they will supply merc and bmw with intel atom based system in 2012 for the 2013 line up cars (probably in time for new merc s class). Lexus will also introduce their new 2013 LS in 2012. I think we have to wait at least until 2016 for infotainment to filter through all the cars line ups.

 

[Mark_888]

which brings my question: how come a kia sorento has UVO while a hyundai equus does not?

Kia's are for young hip persons. The Equus is for geisers. The only voice unit needed by an Equus owner is the ability to tell a chauffeur what to do.

 

[Konig]

Kia's are for young hip persons. The Equus is for geisers. The only voice unit needed by an Equus owner is the ability to tell a chauffeur what to do.

If they have a chauffeur they will not get this car at all.

 

[Konig]

Why do they only have table for the passenger side? I mean the driver can adjust his seat but that doesnt mean the passenger behind him does not deserve a table.

Things I would like to see in this car: 18" wheels, kia UVO, separate A/C compressor for the rear passengers, more reliable spring suspension. Air suspensions are just unreliable in every car.

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[YEH]

Luxury buyers buy brand status. (brand image)
Even if Equus is technically better machine than their target, "I bought Mercedes" is still sound better than "I bought a Hyundai".
I don't think Equus will be a volume seller.
But, I think Equus will be another good experience for hyundai.

Hyundai already knows that and has planned accordingly.

Otoh, "I bought an Equus" sounds better than "I bought a A/B/C Class" or "I bought an ES, IS, HS, or CT."

Luxury watches fall in this category. You can get just about everything you want in a watch...accuracy, durability, design...for a couple hundred dollars...less if extreme durability isn't a factor. Yet people pay thousands of dollars for a Rolex.

People who really don't know much aside from the brand name often buy on the basis of the name (i.e. - Bose; whereas audiophiles generally wouldn't touch Bose).

Like the Genesis, I suspect that the buyers of the Equus will be those who are car nuts or who have done their research and are buying on the basis of the vehicle itself, w/ the brand name being an ancillary consideration.

Along the same lines, while Seiko is a mainstream watch brand (albeit one of the nicer ones), watch afficianados have high regard for Seiko's higher end dive watches which retail for around $6-8K.

 

[Disaster]

People who really don't know much aside from the brand name often buy on the basis of the name (i.e. - Bose; whereas audiophiles generally wouldn't touch Bose).

Like the Genesis, I suspect that the buyers of the Equus will be those who are car nuts or who have done their research and are buying on the basis of the vehicle itself, w/ the brand name being an ancillary consideration.

Very true. I have friends who have a Bose stereo system with a Sony TV and they drive a BMW. His clothes likewise are brand names.

Having said that, you the luxury market is mostly those type of people, and less enthusiasts. The people that drive a BMW because they like how it drives (vs. the status) have a tendency to be the type that buy used, and service their own vehicles.

Along the same lines, while Seiko is a mainstream watch brand (albeit one of the nicer ones), watch afficianados have high regard for Seiko's higher end dive watches which retail for around $6-8K.

The watch arena is a bit unique, as it gets a lot of collectors. These people will buy and collect multiple watches from the same manufacturer. Seiko's and Citizen's are very popular dive watches with the less affluent collectors. They usually run from the high $100's to the mid $400's (rarely will they be over $1000...unless they become rare collector items.) As you move up the dollar scale...into the plus $1000 dollar watches you get brand names like, Doxa and Ball. The next echelon is the Rolex's, Omega's and Panerai's.

 

[YEH]

Very true. I have friends who have a Bose stereo system with a Sony TV and they drive a BMW. His clothes likewise are brand names.

Having said that, you the luxury market is mostly those type of people, and less enthusiasts. The people that drive a BMW because they like how it drives (vs. the status) have a tendency to be the type that buy used, and service their own vehicles.

While no doubt, there are the brand wh*res when it comes to BMW owners, I wouldn't discount the no. who prefer BMW over Mercedes, etc. primarily due to the driving dynamics; many of the people I know who do so buy new (also the type who would buy the M versions).

The watch arena is a bit unique, as it gets a lot of collectors. These people will buy and collect multiple watches from the same manufacturer. Seiko's and Citizen's are very popular dive watches with the less affluent collectors. They usually run from the high $100's to the mid $400's (rarely will they be over $1000...unless they become rare collector items.) As you move up the dollar scale...into the plus $1000 dollar watches you get brand names like, Doxa and Ball. The next echelon is the Rolex's, Omega's and Panerai's.

I'm talking about retail prices for the high-end Seiko dive watches.

For instance, the Seiko Spring Drive Chronograph had a MSRP of around 5,500 Euros in 2007.

http://www.seikowatches.com/baselworld/2007/press/details/070412_04.html

And regarding Rolex, Omega and Panerai - the prices for Rolex's and Omega's most popular and compared models, the Sub and the Seamaster, were around the same ballpark 40-45 years ago (w/ the Sub being a little more expensive); but through better marketing and strict price controls over the years, the retail price for the Sub has surpassed that for the Seamaster by quite a bit.

Panerai became a pretty hot watch brand due to its popularity w/ celebs like Stallone, but not long ago it was an obscure Italian watch brand that supplied watches to the Italian navy (albeit for a time, Panerai watches had Rolex movements) and didn't have a retail business.

 

[Mark_888]

If they have a chauffeur they will not get this car at all.

They do in Korea.

 

[DavidNJ]

Hyundai already knows that and has planned accordingly.

Otoh, "I bought an Equus" sounds better than "I bought a A/B/C Class" or "I bought an ES, IS, HS, or CT."

People who really don't know much aside from the brand name often buy on the basis of the name (i.e. - Bose; whereas audiophiles generally wouldn't touch Bose).

Sort of an elitist arrogance of the proletariat?

 

[Mark_888]

Like the Genesis, I suspect that the buyers of the Equus will be those who are car nuts or who have done their research and are buying on the basis of the vehicle itself, w/ the brand name being an ancillary consideration.

I think the Equus may be a little different than the Genesis. I think they will mainly get Hyundai and dealer employees, people of Korean ancestry, and die-hard Hyundai customers. I don't think you will find very many people shelling out that kind of money for an Equus who have never owned a Hyundai or not connected with Hyundai or Korea in some way. I am sure there will be some exceptions, but not a lot of them.

 

[DavidNJ]

IMHO they overpriced it about 10% or so. The 4-place seating they could have forgotten and if a fully equipped one was $49,995 it would sell. At $55k it is a much harder sell, especially with what I expect will be a mediocre lease in this lease happy segment of the market.

My guess is the reason they are planning to bring over the 4-place seating is because some transplanted Hyundai exec wants it. Now we see if an accountant and a product manager take it away.

 

[YEH]

I think the Equus may be a little different than the Genesis. I think they will mainly get Hyundai and dealer employees, people of Korean ancestry, and die-hard Hyundai customers. I don't think you will find very many people shelling out that kind of money for an Equus who have never owned a Hyundai or not connected with Hyundai or Korea in some way. I am sure there will be some exceptions, but not a lot of them.

Likely, not too many Hyundai/dealer employees able to afford an Equus outside of the top Hyundai USA brass and owners of dealerships.

Recent immigrants from Korea probably wouldn't have an issue, but the vast majority of Korean-Americans buy Honda/Acura and Toyota/Lexus.

Well, the only "die-hard" Hyundai customers who would be able to afford the Equus would be some Genesis owners, many of whom recently came other brands (granted, there might be the odd millionaire who is frugal and drives around in a Sonata; but that sort of person likely wouldn't drop $50-55K on any car).

I'd say that a lot of Equus buyers (not that there will be that many) will be owners of the Genesis looking for an upgrade; but some will be the wealthy types who don't care what other people think and like getting quality products at a value.

IMHO they overpriced it about 10% or so. The 4-place seating they could have forgotten and if a fully equipped one was $49,995 it would sell. At $55k it is a much harder sell, especially with what I expect will be a mediocre lease in this lease happy segment of the market.

Have to factor in room in the pricing to allow for discounts from MSRP.

 

[STREETS]

I think you will have the same customers as the GENSESIS sedan. Smart, economical consumers who took a hard look at the product, ignored the label and found it the best car in class with real world performace and build quality. Ten years ago would I have even thought of buying a Hyundai? No way. Now, Genesis, Equus- hey they are great products and bargain priced vs. the cars they were built to compete against. Plus, do I want a GM Caddy product owned by Obama? No. Do I want a Mercedes that is far below Hyundai in reliability plus taking an extra $15 to $40K from my wallet? No. A BMW or Audi- sure I would partake- if you were paying the car payment!

A good car is a good car. Hyundai is making not only a good car, but a great car and making an outstanding statement.

 

[Disaster]

IDo I want a Mercedes that is far below Hyundai in reliability plus taking an extra $15 to $40K from my wallet? No. A BMW or Audi- sure I would partake- if you were paying the car payment!

BMW and Audi are in about the same quality league as Mercedes. The 3 series isn't bad (like the Mercedes C series), but the rest of the lineup...especially when you get to the more expensive, higher optioned models, are pretty bad. Audis have lots of problems too.